Know 15 major view pointers from experts on MSME developments today-

Union Finance Minister Nirmala Sitharaman Wednesday announced a slew of measures to help businesses, including micro, small and medium enterprises (MSMEs), recover from the economic impact of the coronavirus pandemic. This was a part of the Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi a day before to spur growth and help build a self-reliant India. Here, economic expert Ranjeet Natu slates 15 major goods and bads in the context-

 

 

1. Long due demand of revising norms for MSMEs is a good move.

 

2. TDS rate reduction of 25% is not as per expectation. Should have been more to an extent that TDS deduction should have been only seen as a means to track every transaction.

 

3. Due dates for tax returns extended as expected. They may have to extend it further.

 

4. Good relief to builders under RERA.

 

5. Re-registration process for trusts should have been cancelled.

 

6. Support given to NBFCs, HFCs and MFCs was much needed.

 

7. 3 lakh crores loans to 45 lakh MSMEs looks too small. Should have been more especially when the MSME

definition is now revised which will add to the number of eligible MSMEs.

 

8. 20000 crs for 2 lakh stressed MSMEs is fair.

 

9. EPF contribution has been reduced by 2%. It should have been made 6% which would have added thrice the liquidity in tbe market. You don't save much during bad times and these are real bad times. So spend spend and spend more is the mantra.

 

10. More incentives needed on the spending by individuals which will stimulate demand. Just adding liquidity in the hands will not work. People may just try to save in view of uncertainty in sight. They should be promoted to spend too.

 

11. Better regulatory changes needed to reduce red tapism which is a major dampener for Bharatiya enterprises.

 

12. Move to release BGs of govt contractors is a good move. It will aid them in realigning their finances and add to liquidity.

 

13. Just the way force majeure has been invoked for builders for the period of pandemic, it should be invoked for all

the business contracts and agreements across the board. This will result in avoiding unnecessary litigations that hamper smooth business functioning and growth.

 

14. Easier access to foreign bank loans for MSMEs should be given.

 

15. No global tendering for govt works upto 200 crs is very good

 

On Tuesday evening, PM Modi pitched for a self-reliant India in the post Covid-19 world as he announced an economic package that is about 10 per cent of the country’s GDP. The Prime Minister said the package would help every section of society, including workers, farmers, the middle class, industrial units and the MSME sector.

 

The stimulus will play an important role in the ‘Atmanirbhar Bharat Abhiyan’ (Self-reliant India Campaign), PM Modi had said. “India’s self-reliance will be based on five pillars — economy, infrastructure, technology driven system, vibrant demography and demand. When India speaks of self-reliance, it does not advocate for a self-centered system. In India’s self-reliance there is a concern for the whole world’s happiness, cooperation and peace,” he said.